Retainage

Retainage,

Definition of Retainage:

  1. Portion of a contracts final payment withheld by a principal (client or owner) until the project is complete in all respects, functioning satisfactorily according to the contract terms, and all mechanics liens have either been released or have expired.

  2. A portion of a payment for construction work which is withheld from the contractor until the work is satisfactorily completed; the practice of withholding such a payment.

How to use Retainage in a sentence?

  1. For a project as large as constructing a lifelike robot overlord statue for the town hall rotunda, a 20% retainage doesnt seem very extraordinary at all.
  2. You should always keep a retainage so that you know the other party still has something to motivate him to do well.
  3. I was glad we had a retainage policy, so we could wait until everything was finished before paying the people.

Meaning of Retainage & Retainage Definition